Which deposits are covered by the DGS?
27/06/2023
The Deposit Guarantee Scheme for credit institutions (DGS) contributes to the stability of the financial system by guaranteeing deposits of cash and securities belonging to customers of member institutions that experience problems and cannot return them.
In this series of videos we explain which types of deposits are guaranteed by the DGS:
- What does the DGS guarantee? (I)Abre en ventana nueva
- What does the DGS guarantee? (II)Abre en ventana nueva
- What does the DGS guarantee? (III)Abre en ventana nueva
The DGS generally covers all cash deposits, such as, current accounts, savings accounts, passbook accounts, savings deposits, sight or time deposits and fixed-term deposits, guaranteeing a full refund.
As for deposits of securities, the DGS guarantee covers the shares, investment fund shares or units and other financial securities deposited in Spain or in any other country in the world through a DGS member institution. However, it should be clarified that the DGS does not cover the loss in value of the above-mentioned securities, only the failure to return them. Thus, the DGS would refund the value of the securities at the date the member institution became distressed.
The DGS covers deposits in cash and deposits of securities separately. In both cases, and generally, the DGS guarantees up to €100,000 per depositor and institution, although there are exceptions where coverage by the DGS may exceed €100,000 per depositor. We’ll be looking at these cases next.
